A 1-litre bottle of Coca-Cola or Pepsi is the same price in your local bookstore; therefore, you are forced to make a choice based on other factors, such as taste or brand preference. This pricing tactic is an example of matching the competition.

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Matching the competition means pricing your product similar to your competitors in order to avoid losing customers to them. In the given scenario, both Coca-Cola and Pepsi are priced the same, which is a tactic of matching the competition.

A 1-Litre Bottle of Coca-Cola or Pepsi Is the Same